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Premium Reduction Service Increases Industrial Property’s Value By $71,300

by Susieon April 26, 2017 in Case Studies tagged Flood Insurance, NFIP, Premium Reduction with no comments

Our client, a large commercial real estate company, owned a single structure multi-tenant industrial building. The insured was maintaining one NFIP policy that was coming up for renewal. The lender’s flood zone determinations showed that the building was in a Special Flood Hazard Area (SFHA: zones beginning with the letter A or V). The client was concerned over the rapidly increasing flood insurance premium and was looking for ways to reduce it.

The Solution

Our industry-leading flood team quickly determined that there were more favorable rates available for this building. We obtained elevation certificate for this building that enabled us to re-rate the flood policy using the lower cost rate structure available through the NFIP. By leveraging our flood expertise, we delivered substantial future savings and increased property values.

The Results

Reduced total annual NFIP costs by $5,000 (86%);
Increased property value by $71,300, based on the application of a 7% capitalization rate;

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A Regional Retail Chain Saves 50% on Annual NFIP Costs

by Susieon April 18, 2017 in Case Studies tagged Flood Risk Management, NFIP, Premium Reduction with no comments

Our client, a national insurance agency, asked us to help them find a way to reduce the NFIP flood insurance premiums for one of their clients – a regional retail chain with five stores located in Special Flood Hazard Areas (SFHA: flood zones beginning with letter A or V). The NFIP flood insurance premiums totaled $39,475 for the 5 NFIP policies. The company has maintained NFIP flood insurance on these five stores for many years. However, as the NFIP rates were rapidly increasing year by year, the insured was looking for ways to reduce their flood insurance costs.

The Solution

Our industry-leading flood team quickly determined that there were more favorable rates available for these buildings. This enabled us to re-rate the flood policies using the lower cost rate structure available through the NFIP. As a result, our Premium Reduction Service reduced annual flood insurance premiums, delivered substantial future savings, and captured a large flood insurance refund.

The Results

Our Premium Reduction Service delivered following valuable benefits to the client:

Reduced annual NFIP flood premiums by almost $20,000;
Delivered 50% in annual savings;
Procured a $80,000 flood insurance refund for the last five years;

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A Multifamily Company Saves $135,000 on Annual NFIP Costs

by Susieon January 30, 2017 in Case Studies tagged Flood Insurance, Flood Zone Correction, Multifamily, NFIP, Premium Reduction with no comments

A retail agent had an insured with a portfolio of multifamily properties. The insured was maintaining NFIP flood insurance policies on 42 buildings at 4 locations. The lender’s flood zone determinations showed that the buildings were in Special Flood Hazard Areas (SFHA: zones beginning with the letter A). The client was concerned over the high flood insurance premiums and was looking for ways to reduce them. The retail agent was looking for savings opportunities and asked us for help.

THE SOLUTION
We completed a comprehensive flood risk analysis and determined that 7 buildings on two properties were not at high risk of flooding during 100-year storms. These 7 buildings had been incorrectly classified in the SFHA. We worked with FEMA to successfully remove all 7 buildings from the high-risk flood zone and to reclassify them into a low-risk flood zone, where they should have been in the first place. By leveraging our flood zone correction expertise and capabilities, we delivered five valuable benefits to the insured: (1) eliminated lender’s flood insurance requirement, (2) maximized the flood coverage afforded under the insured’s master property insurance policy, (3) delivered substantial future savings, (4) captured a large insurance refund, and (5) increased the value of the property.

In addition, through the flood risk analysis process we were able to identify more favorable rating options for buildings on two other properties. This allowed us to deliver three valuable benefits: (1) future savings by greatly reducing the annual NFIP premiums, (2) a large insurance refund, and (3) an increase to property values.

THE RESULTS
• Successfully removed 7 buildings from the SFHA;
• Reduced total annual NFIP costs by $135,191 (71%);
• Procured a $94,674 flood insurance refund;
• Increased property values by $1.9 million, based on the application of a 7% capitalization rate.

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Premium Reduction Service Increases Self-Storage Property Value By More Than $625,000

by Susieon February 1, 2016 in Case Studies tagged Flood Risk Management, Premium Reduction with no comments

One of the nation’s leading self-storage companies owns a property in Texas with 8 buildings, where the NFIP flood insurance premiums were $52,014 for the 8 NFIP policies. The client desperately sought a solution that would decrease its flood insurance costs while allowing it to maintain the same coverage in order to satisfy its lender’s flood insurance requirement.

The Solution

Our industry-leading flood team quickly determined that there were more favorable rates available for these buildings. This enabled us to re-rate the flood policies using the lower cost rate structure available through the NFIP. As a result, our Premium Reduction Service captured a large insurance refund, delivered substantial future savings, and increased the value of this property.

The Results

Our Premium Reduction Service delivered following valuable benefits:

Reduced annual flood premiums by $43,938 (84%).
Increased property value by more than $625,000 by capitalizing the annual savings at a 7% capitalization rate.
Procured a $43,938 insurance refund.

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Premium Reduction Service Helps Insurance Agency Win a New All-Lines Property and Casualty Account

by Susieon December 28, 2015 in Case Studies tagged Flood Insurance, Premium Reduction with no comments

Our client, a leading regional insurance agency, was trying to win a new all lines property and casualty account by taking it over with a mid-term broker of record (BOR) letter. Their prospect was a large condominium association, where the NFIP flood insurance premium on the 48 buildings was approximately $160,000. This was 45% of the condominium association’s total insurance budget of $350,000. While the agent had demonstrated to the association that he could reduce their total insurance budget by about 10% by saving money on a few lines of coverage, the association did not think 10% was enough to fire the incumbent broker.

The Solution

We used our research-driven underwriting process to procure data that enabled us to re-rate the flood policies using an alternative rate structure available through the NFIP. As a result, we were able to reduce the annual NFIP premium by approximately $55,000 (34%) and reduce total insurance expenses by an additional 15%. Combined with the agent’s other ideas for reducing insurance costs, our Premium Reduction Service helped the agent get the BOR letter and win the new account, by helping the agent deliver total insurance savings of 25%.

The Results

Reduced annual NFIP flood premiums by $55,000 (34%).
Reduced total insurance expenses by an additional 15%.
Helped the agent to get the BOR letter and win a new account.

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Premium Reduction Service Increases a Multifamily Property’s Value by $2.4 Million

by Susieon December 9, 2015 in Case Studies tagged Flood Risk Management, Premium Reduction with no comments

The Challenge

One of the nation’s leading multifamily companies owned a large apartment complex with 29 buildings, where the NFIP flood insurance premiums were $222,434 for 29 flood insurance policies. The high cost of flood insurance resulted in the property operating with a negative cash flow for several years, which substantially decreased the value of the property. The client desperately sought a solution that would decrease its flood insurance costs while allowing it to maintain the same coverage in order to satisfy its lender’s flood insurance requirement.

The Solution

We used our research-driven underwriting process to procure data that enabled us to re-rate the flood policies using an alternative rate structure available through the NFIP. As a result, our Premium Reduction Service captured a large insurance refund, delivered substantial future savings, and increased property values.

The Results

Reduced annual flood premiums by $166,825 (75%) while maintaining the same exact coverage.
Increased property value by $2.4 million by capitalizing the annual savings at a 7% capitalization rate.
Procured a $295,280 insurance refund.

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Correcting NFIP Rating Errors Reduces Premiums by 75%

by Susieon June 10, 2015 in Case Studies tagged NFIP, Premium Reduction with no comments

Our client, a super-regional insurance agency, asked us to help them find a way to reduce the NFIP flood insurance premiums for one of their new clients – a large commercial real estate company that owned a single structure multi-tenant retail plaza. The property was insured with six different NFIP flood policies representing total premiums of $24,648 for this one structure, which were written by the prior insurance agent.

THE SOLUTION

We used our unique, research-driven underwriting process to procure documentation which identified that there were two rating errors in this situation. First, in accordance with NFIP rules and regulations, there should have been only one policy for this structure based on its construction specifications. Second, the prior insurance agent used inaccurate rating information to calculate premium, which resulted in artificially inflated premiums. By leveraging our flood expertise, we delivered substantial future savings, captured a large insurance refund, and increased property values.

THE RESULTS

$100,000 insurance refund from eliminating the duplicate policies
$23,966 (75%) reduction in the total annual flood premiums
$340,000 increase in property value, based on the application of a 7% capitalization rate

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Premium Reduction

Premium Reduction Service Increases Industrial Property’s Value By $71,300

A Regional Retail Chain Saves 50% on Annual NFIP Costs

A Multifamily Company Saves $135,000 on Annual NFIP Costs

Premium Reduction Service Increases Self-Storage Property Value By More Than $625,000

Premium Reduction Service Helps Insurance Agency Win a New All-Lines Property and Casualty Account

Premium Reduction Service Increases a Multifamily Property’s Value by $2.4 Million

Correcting NFIP Rating Errors Reduces Premiums by 75%

THE SOLUTION

THE RESULTS

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